A

PROJECT REPORT

ON

“FIXED ASSET MANAGEMENT”

OF

SOLVAY SPECIALITIES INDIA PRIVATE LTD.

(SUBMITTED IN INDIRA INSTITUTE OF MANAGEMENT,PUNE)

SUBMITTED BY :

VIVEK SAHANI

M.M.M(1 SEMIESTER)

UNDER THE GUIDANCE OF :

Prof. HETAL MACHHI

YEAR-2008-2010

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CERTIFICATE

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DECLARATION

I,Mr. VIVEK SAHANI , student of INDIRA INSTITUTE OF MANAGEMENT,PUNE, affiliated to UNIVERSITY OF PUNE,PUNE hereby declare that this project report is a result of culmination of my sincere efforts.

I declare that this submitted work is done solely by me and to the best of my knowledge no such work has been submitted by any other person for the award of degree or diploma at any other institute or organization.

Date:

Place:

VIVEK SAHANI

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CERTIFICATE

This is to certify that Mr. VIVEK SAHANAI has satisfactorily completed the project work

Entitled “ Fixed asset management of Solvay Specialities India Private Ltd.”. Based on that declaration made by the candidate and my association as a guide for carrying out this work, I recommended this project report for evaluation as a part of the MMM programme of UNIVERSITY OF PUNE.

Place:

Date:

HETAL MACHHI

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ACKNOWLEDGEMENT

I would like to extend my heartfelt thanks to Prof. HETAL MACHHI, for her help in making this report possible.

I would also like to thank Mr. Vinod Pathak, G.M of H.R department of Solvay Specialities India Private Limited and Mr. Deepak Bhatt, Manager(H.R) for giving me the opportunity to get trained in their company and preparing a live project.

I would like to personally thank Mr. Biswa Chatterjee, G.M of Finance department of Solvay Specialities India Private Limited for sharing the transparencies of the company with me and guiding me through out the project.

Lastly, I would also like to thank for the valuable help provided by all the staff members of Finance department. Each and every person mentioned above has contributed their value and efforts in the report.

And I also thankful to my institute to gave me very useful learning in organization.

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PREFACE

Summer training is a part of management course which is very helpful to bring practical knowledge in this globalization world. Now a days only theoretical knowledge is not enough to succeed in life but most important part is that we must also have practical knowledge. With the help of this training, I came to know whatever we learn theoretically how it’s implied practically.

Main purpose of this training is to get knowledge of the industrial and to know about function of the specific department.

I got an opportunity for conducting my summer training in Solvay Advanced Polymers.

I am lucky that I got a chance to do my training in such a reputed company. While on training my knowledge got updated and now I can relate the theoretical knowledge with the practical world. Such practical aspect of business world is really going to help me for my bright future in management.

- Vivek Sahani

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CONTENTS

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SR NO PARTICULARS PAGE NO

1 EXECUTIVE SUMMARY 9

2 GENERAL INFORMATION 10

3 HSE DEPARTMENT 20

4 SYSTEM / IT DEPARTMENT 24

5 PATENT DEPARTMENT 26

6 R & D DEPARTMENT 28

7 SCM DEPARTMENT 35

9 PRODUCTION DEPARTMENT 44

10 HR DEPARTMENT 56

11 FINANCE DEPARTMENT 61

12 SPECIALISATION STUDEY 67

13 ANNEXURE

EXECUTIVE SUMMARY

This practical training in the MMMS programme of the GRIMS develops the feeling of awareness among the students of management studies. Along with theoretical knowledge this training has imparted the complete education of practical world, which is the value addition in our course.

I have tried my best to meet the requirement by producing report that is highly illustrative and clearly

explaining concepts that I have learnt during the training period. I have also paid enough attention to

revising Knowledge and experience from solvay people. During the period of project time I learn how

really organization work, and how our theoretical knowledge put in practice. The topic FIXED

ASSET MANAGMENT was given by company because they also require it ,for complited this

project I work hard and company employees are also very helpful in my work. This project really has

enhanced my practical knowledge of the different management areas, which will be very much

fruitful for me in future.

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SOLVAY SPECIALITIES INDIA PRIVATE LIMITED (SSIPL)

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Plot No. 3526-27, GIDC Estate, PANOLI, 394 116, Dist - Bharuch (Gujarat) INDIA 

Tel 91-2646-272575, 272576

Fax 91-2646-272141

Contact Vinod Pathak

Email Vinod.Pathak@solvay.com

Website www.solvayadvancedpolymers.com

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The story of the Solvay group began on 15 April 1861, when Ernest Solvay patented a revolutionary ammonia-soda process for producing sodium carbonate. - also known as soda ash - using common salt, ammonia, carbon dioxide (CO2) and lime

The Solvay group is present in more than 50 countries on every continent and employs over 30000 people.

Solvay has grown to become a global chemical and pharmaceutical group active in three Sectors:

Pharmaceuticals

Chemicals

Plastics

Panoli plant was started on 10-05-2006, solvay acquired Gharda plant only peek plant because at that time plastics sector are booming. the head office of Panoli plant in india in Mumbai all transaction are done with the permission by head office.

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Growth in Specialty Polymers

`Upgrade the existing product portfolio to meet growing demand and penetrate new markets : expansion.

Fluorinated polymers (Algoflon® and Hyflon®)

PES/PPSU Radel®

Polyvinyledene fluoride (PVDF)

Perfluoropolyether (PFPE) polymers

PVDC

Broaden the current polymer / technology portfolio through R&D and acquisitions

Mississippi Polymer Technologies (USA) : PrimoSpireTM

SolviCore (50/50 joint venture Solvay/Umicore) : R&D, production and sales of Membrane

Electrode Assemblies for application in Fuel Cells

Accelerate investments in fast growing markets :

Development center in China / strengthening of local marketing organization

Polymers Division of Gharda (India) : access to ultra high performance polymers, PEEK :

start up of an industrial-scale unit in India

Construction (by 2008) of a world-class plant for micronized polytetrafluoroethylene (PTFE)

powder in China

With the successful start-up of its 500 ton/year production unit in Panoli, India, Solvay now delivers KetaSpire® PEEK and AvaSpire® modified PEEK – two ultra polymers that offer best-in-class chemical resistance and mechanical properties, plus ease of processing.

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The Solvay group’s general direction is expressed in its Mission, its Vision and its Values. The Mission and Vision statements have recently been amended to explicitly express the Group’s commitment to Sustainable Development and Societal Responsibility.

MISSION:

Building on our scientific, technical and commercial expertise, and aware of our societal responsibilities, we provide innovative products and services related to chemistry and human health to create sustainable and ever- increasing value to our customers, shareholders and employees.

VISION:

Solvay is an independent, ethical and responsible global industrial Group with a balanced portfolio of sustainable, profitable and growing businesses, managed in accordance with societal and environmental issues.

Amongst the world leaders in selected markets and products either alone or with sound complementary business partners

Valued by its customers as a highly competent, reliable and competitive solution provider. With a clear, motivating organization, through dialogue, developing and empowering people and

teams through rewarding and challenging jobs. Acting as good corporate citizens, caring for the environment, health and safety of its employees

and of the community at large.

Open to the expectations of the outside world, and contributing to economic, social and environmental progress.

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VALUES:-

We firmly believe in:

Ethical behaviors - A long-standing tradition of ethical behavior based on principles of Honesty, Integrity and Trustworthiness.

Respect for people - Encouragement to exercise creativity and leadership, giving opportunities for every individual to develop his/her full potential.

Customer care - Constant enhancement of the quality and added value of our products and services through ongoing and cost effective innovation.

Empowerment - Fostering a culture that encourages delegation, risk taking, speed of response, accountability and partnership in order to adapt effectively to an uncertain and rapidly changing world.

Teamwork - Developing a learning organisation by building teamwork with open communications across our organisation, sharing knowledge, technologies and best practices.

GOAL: - “Knowledge Converted to products to Wealth for the

Good of Society”

STRATEGIC PILLARS :-

Innovation :-innovation is the process by which an enterprise converts the creativity of its employee and partners into added value faster and better then its competitors

Competitiveness :-continually identifying and seizing opportunities to improve ways of doing things and implementing changes in work processes to ensure the most effective and efficient performance

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HEALTH AND SAFETY POLICY

“Maintaining high standards of health & safety in working place prevent accident/incidents will be our main objective”.

“Continues improvement of the work environment through assessing potential risk involved in the activity & taking appropriate measured to curb them”.

“Providing information about the hazards involved in the processes to the employee & also to the general public”.

“Providing training to the employee for making them understand the implication of the process, which encourage the worker participation in the safety activity”.

“Companying with the relevant the legislation and code of practice as per the local government regulation”.

“Developing operator – friendly & eco –friendly plant for better productivity & total loss control. Providing safe & healthy environmental to the contract worker. We consider as on of our main commitment”.

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QUALITY POLICY: -

“To achieve and enhance customer satisfaction by providing quality product and services, in the field of specialty plastic & Polymer on time.

To manufacture products through processes development using in-house research and development.

To employ qualified/skilled manpower and continuously train them to enhance their skills, knowledge and effectiveness.

To continually evaluate and improve effectiveness of quality management system by establishing and reviewing quality objectives”.

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CORPORATE SOCIAL RESPONSIBILITY

Is a voluntary business contribution to Sustainable Development integrating all stakeholders’ expectations in order to optimize relationships as a basis for continuous improvement and innovation.

o Going beyond "corporate citizenship" the concept of Corporate Social Responsibility implies that corporation’s voluntary commit to improving society, in the broadest sense of the term protecting the environment. It means that, beyond obeying the national and international legal obligations, enterprises pay greater attention to the human aspects of their activities and to the new expectations of the various Human resources management (life long learning, empowerment of employees, better balance between work, family and leisure, greater work force diversity , employability, ..)

o Health and safety at work and for the end-user of our products

o Adaptation to change

o Managing the impact of production on the local environment and on the consumption of natural resources

stakeholders in society, all this without detracting from the economic purpose of the enterprise or impairing its competitiveness.

Corporate Social Responsibility covers various areas, among them:

Within the company:

Externally:

o Contribution to local communities (by providing jobs, vocational training places, child-care facilities for employees, partnership with communities.)

o Working closely with business partners, suppliers, subcontractors and consumers (to reduce complexity and costs and increase quality)

o Defending human rights (implementation and compliance with the Code of Conduct and ongoing verification)

o Environmental concerns at a global level (for example, better environmental performance throughout the supply chain)

Corporate Social Responsibility at Solvay is seen as:o A long-term approacho Linked with a Sustainable Development commitmento A responsibility expressed in ethical practices, training of employees, health and safety at

work and environmental management o A way to provide for the wellbeing and secure conditions for communities, protection for the

planet and sustainable success for the company’s production activities.

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STRATEGIC FRAMEWORK

The 5x5 matrix: the strategic framework of the Solvay group Policy & Strategy on Sustainable Development, taking into account all stakeholders.

The 5x5 matrix defines the fields of action for each of the stakeholders with respect to the strategic issues of Solvay.

This structuring framework is used to assess the risks associated with our activities and to identify opportunities to create real new values for the enterprise and its stakeholders.For each stakeholder, the 5x5 matrix allows to:

o identify the critical challenges and set up the prioritieso identify the opportunities of actionso use performance indicators

The two dimensions of the 5x5 matrix are:

1. 5 major issues defined in the Group Vision Statement

o Acting as an ethical and good citizen companyo Applying efficient management methodso Making products that are sustainable, profitable and with growth potentialo Implementing a worldwide industrial strategyo Respecting mankind, the environment and the community

2. 5 stakeholders

o Investorso Personnel and subcontractorso Customers and supplierso Local communities

o ociety (NGOs, Governments, scientific world)`

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AWARDS WON BY THE COMPANY:

Solvay Specialities India Pvt. Ltd. has also won some awards such as:

1. INDIAN CHEMICALS MANUFACTURERS ASSOCIATION award for the development of “INDIGENOUS TECHNOLOGY”.

2. BPC (Baroda Productivity Council) award for “GOOD HOUSE KEEPING”.

3. Govt. of India Appreciation certificate for the contribution of revenues with the spirit of co-operation and voluntary compliance with the laws during the year 2008-09.

4. Plast Icon award for the “Innovative Products” for the years 2006 and 2008.

5. ICMA award for the years- 2007-08.

6. FICCI annual award for “Research in Science and Technology”.

DEPARTMENTAL STUDY :-

HSE Department.

System/IT Department

Patent Department

QA Department

R&D Department.

Supply Chain Department.

Production Department

Human Resource Department.

Finance Department.

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Safety means “it is freedom from Danger, Hazard, Accident”

Basic need for safety:

o Safety aspect.

o Humanity aspect.

o Legal aspect.

o Economic aspect.

o Productivity aspect.

Objective:-

o The desire to increase production as a mean to a higher standard of living.

o The desire to reduce cost.

o Reduce the shortage of skilled man power and the need to conserve and make the best use of man

power skills.

o The desire to reduce need less human sufferings on humanitarian motives.

Health safety Environment department are play very important role for the company. HSE department

give training to all company and contract employees on various safety topics & how to handle any

material in premises.

Two type of safety they maintain

o On site emergency plan

o Off site plan

HSE department also look after the ETP plant, issue of vessel permit for any plant,

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Equipments use for personal safety :

o Helmet

o Safety Shoes

o Safety Goggles

o Ear Muff

o Mask

o Rubber Gloves

o Apron

Activities:

HSE department done various activities for improve knowledge of there employee about safety and

environment

o Safety Education.

o Safety Award Scheme.

o Safety Competitions.

o Suggestion Scheme.

o Celebration of Events.

Currently they give Green tag & Gold card to all department to give more safety for their employee

They provide medical service to all employee, for any type of accident accrue daily doctor available in

premises for hall day and two mail nurse are 24 hours in company. Any big accident accrue for that they

have ambulance service to take employee in nearest hospital.

Every end of month HSE held meeting with all department head and if they have any problem regarding

safety they try to solve it

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Solvay think accident accurse two type of cost and its harm to image of company

i. Insurance cost:

o Employee liability.

o Public liability.

o Product liability.

ii. Un insurance cost:

o Product time.

o Product damage.

o Legal cost.

o Fins.

o Bed publicity.

In Solvay Panoli plant 216 fire extinguisher available, each department cover from it.

Fire alarms are cheek every Monday, and all employees are well trained about siren sound and what they

do if they blow. They made two assembly points for gathers when any type of accident accurse.

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Systems department in Solvay Panoli plant are handling by Solvay information system (SIS). It generally handles day to day maintenance related to hardware, software and configuration. SAP is being used from 1st April 2009.Befor the SAP start RAMCO SYSTEM was used.

All the transactions related to every department are recorded in SAP, like purchase requisition Purchase order, Goods Inward is prepared using. Head office can know the working of the Panoli plant through its online data on SAP.

Daily work of system department is to Data backup, maintain networking, and solve problem regarding system.

There is a separate portal for Solvay known as AMIGO for which employees have separate email id. In which Solvay employees can get their information and latest news about Solvay.

Sap is use globally and RAMCO used only for particular plant

SAP is very useful because we can show all process of work that is being done to the other departments situated at the same place or at the other places connected to it. For that different types of modules are used.

They introduce new model of SAP in 2010.

HardwareHardware

o E-mail Server

o SAP server

o WAN connectivity server

Software

o SAP

o E-mail

o PSI (Chat)

o Office (MS/Open)

o Internet/intranet

o Miscellaneous

A team of efficient IT specialists maintains the SAP systems through which solvay has integrated

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all its plants, regional offices, branches/depots all over world through satellite and microwave connectivity.

In has created a team of experienced professionals who by their imaginative use of these technologies have enhanced the reputation of solvay as a quality, time and cost conscious organization manifold

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Patent department of Panoli plant are directly connected with head office, Belgium.

Solvay group are spread in 50 countries In three sector so for that they require all new information

about other company product and their patent.

Solvay specialties India ltd. at Panoli main product is different type of polymer & plastic grains so

they find information for it,

Work information are also given by head office and they directly report to them

At Panoli only two person work in patent department

Main work of patent department to follow the instruction of head office and finding new patent for

their product and also check patent they find does not exist in the market. or it existing then what are

the change we require in our product to take patent

Information given by varies plant it checks by expert in head office base on some criteria of the

company, their job is to analysis of all information and how to use it

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The Quality department is responsible for the Process quality, Receipt Quality, feedback quality and product development quality. Today for the survival in the market you have to be assure that the quality of your product must be the best and time to time you have to improve the quality of your product. If you don’t improve the quality than too it will be the same as you are providing now. If the quality goes down than you can be thrown out of the fast growing market.

Objective:

Reduce the non-performance and achieve best quality of product.

TIMELY feedback to operation department for batter achievement.

Function:

Monitoring.

Inspections of incoming material (R.M).

Inspection of in-process material & final product.

After analysis feedback to operation department, it helps to maintain process control.

Q.A also look after polymer lab in this they check final polymer for mechanical & thermal polymer.

Technique & Equipment:

There are various technique uses in Q.A lab for testing.

High-performance liquid chromatography (HPLC).

Gas chromatography (G.C).

Gel permission chromatography

Titration

Spectroscopy

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Tester & Stirrer.

Other equipment.

During processing, at each stage of production sample is sent to QA department and it is tested if it is approved then it is passed for next stage of production Otherwise

Reprocessing :- The material is reprocessed if it is not according to the specification. Blending :- Blending of the material is done with the other material whose purity is more

than the required Quality Department are joint with all the Department for example store dep, production dep, supply chain

dep, R&D dep, because without clearness of QA dep no raw material enter or no goods are exit In solvay for QA department in SAP system different colour light indication is use for example,

Ok

In Process

Not Ok

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STRUCTURE OF R&D DEPARTMENT

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DIRECTOR

SR. MANAGER R & D

DY. MANAGER

EXECUTIVES EXEUTIVES

MANAGER

OFFICERS OFFICERS OFFICERS

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Objective:

The main objective of R&D department is to develop new product and innovate existing product as per the market requirement

In Solvay Panoli plant R&D department have three parts

a) Synthetics Lab.

b) Application Lab.

c) Green Chemistry Lab (karma lab).

Functions:

o Synthetics Lab:

Finding new monomer and polymer.

Plant support activities for existing monomer and polymer.

New raw material approval.

o Application Lab:

To explore new application for existing polymer.

To make polymer composite and find out their application.

Extrusion trial to support compounding plant.

oGreen Chemistry Lab:

Work on removable resources.

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STRUCTUREC OF SCM DEPARTMENT

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GENRAL MANAGER SCM

SR. MANAGER

MANAGER

DY. MANAGERS

EXECUTIVES

OFFICERS

EXECUTIVES

OFFICERS

SR.MANAGERSTORE

supply chain is the network of all parties that directly and indirectly deliver a finished product or service to a customer.

SCM is about managing complex relationships and coordinating managerial processes within firms (intra-organizational) and between firms (inter-organizational or cross-enterprise).

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In this company the Marketing department comes under the Supply Chain Management department. There is no separate department for Marketing. Both of these departments are combined. The SCM department works in the way as shown above in the chart. There are three main functions of the SCM. They are customer facing, regulatory and internal facing. The first function i.e. the customer facing has under it function as order to cash which further has four functions as product planning, product scheduling, logistic & dispatch and the last one is cash generation. The second function i.e. regulatory function looks after the legality of the various functions. The third function i.e. the internal function looks after the procurement of the various materials needed for the production as well as the engineering and different services needed for the smooth production work and also about the storing of the finished products in the warehouse.

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SCM include with different activity show in below chart.

ORDER TO CASH:-

Production Planning:

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SCM

Finance

Production

Product Mgmt.

Marketing

GlobalLogistics

o Consider orders directly received for supply

o Consider Projections from customers approve from marketing department at Bombay.

o Collect order detail & projection for next month production planning in last week of particular month and confirm dispatch priority.

o Forward order +Projection list to particular production plant.

o Then production department gives date of availability of material.

o And last inform customer material available date.

Production Scheduling:

o For production scheduling PICASO software used by solvay group.

o Picoso communicate with sap, and directly make the order to particular plant.

o Then sap check the availability of raw material and if it sufficient then it issue to plant from store, But if raw material stoke are not sufficient at that time sap generate PR for the require material.

Logistics & Dispatch:

Purpose

o To review the dispatch requirement as per agreed customer orders and make arrangement for dispatch.

o To dispatch the specified quality products, as per Customer requirements.

Activities

o To daily enter of RG1 (production, sales, export, excise duties &invoice) by manually & through SAP

o Daily telephonic talk with Sales dept. (Mumbai) regarding export & local dispatch

Sources of Dispatch

o Truckso Containerso Shipo Air craft

Document useo Bill of leadingo Invoice

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o Packing listo Certificate of origino Other as per requirement.

Inco termo For export business global languages are used its call Inco term. There are few

example are commonly use FOB,CSF,FRI,

Cash Generation :

o Receive daters due/over due file every week through e-mail from FICO.

o Customer service representative (csr) send reminder letter/e-mail to customer with refrains to above file

o Csr receive payment detail from customer and send to FICO

o FICO does accounting

PROCURMENT(PURCHES ):--

Activities o The main function of purchase Department is to provide raw material and

spare parts to the required department as and when needed.o Purchase executive also plays bigger role in the decision of pricing by making

negotiationso An executive of Purchase Department in co-ordination with Finance

Department makes the selection of vendors and suppliers.o They also keep in touch with the suppliers regarding the date and time of the

delivery of the goods and also conditions if not supplied on time.o Purchase department prepares purchase order and also release purchase order

o Purchase Department with Q.C. Department in order to check quality of

material and then purchase the qualified material.o Purchase Department also prepares Receivable Notes

Raw Material:

o Purchase Department maintains minimum level of stock of each material they first identify EOQ (Economic Order Quantity) of raw material. By considering the lead time and re-order point the order gets placed

o For that they maintain minimum level & maximum level of all goods, if they found minimum level at that time follow the above process to get raw material.

o Information of the minimum goods get easily by SAP.

Process structure of purchase

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Report for Quotation

Purchase Requisition

Eng.Service:

Follow the same process for getting any engineering product by any department

Services:

In this procurement of services like labor, transport contract, canteen all type of services are come in this part

STORE(WAREHOUSE )

Function:o Issuing material.

o Material coding.

o Manage the goods register.

o Security of material.

o Handel material as per material safety data (MSDS) sheet.

Store Procedure

When the goods or material reaches to the company the security office checks physical quantity and register the details of material. Then material reaches to Stores Department,

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Store Executive records the entry of goods or material in the inward register. The consignment is recorded in the goods receipt note before the Q.C. Department checks the quality of the material. If the approval is done then only material gets stored at its place. If material gets rejected then it gets deducted from GRM. Any part of the machines needs not to be checked by Q.C. dept. and it directly comes to Stores Department. For the purpose of easy and smooth transportation different type of racks are maintain for the various department.

o In Panoli plant two warehouse situated in near the main get so it easy for movement of

material coming & exit.o Both building are joint with one big Shutter door. so if any work are require then they

easily communicate with each other.o In Warehouse 1 raw material & engineering goods are stored, for that they distributed

their responsibility as per their work.o In ware house 2 semi finished and finished goods are stored and when dispatch orders

come they dispatch the goods

Raw Material:

o For storing the raw material they use different type of stand, barrel, and bags.

o All raw material are stored as per the material safety data sheet.

Eng,Goods :

o Engineering goods are stored in warehouse as group wise like safety goods, plant goods, production goods. For that different rack are uses in Panoli plant.

o And they release goods as per company requirement.

Semi finished &Finished Goods:

o Finished goods are dispatch as per order come from the party. For that they us cardboard, different box, and bags.

o For semi finished they packed in different colour bag as per different plant, for example PES plant yellow colour, PEEK plant white colour, DHDPS plant blue colour.

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Production department hierarchy

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GENRAL MANAGER

MANAGER

EXECUTIVE

OFFICERS

DY.MANAGER

EXECUTIVE

OFFICERS

DY.MANAGER

EXECUTIVE

OFFICERS

MANAGER

EXECUTIVE

OFFICERS

TECH SERVICES

EXECUTIVE

PROCESS MANAGER

PROCESSDY.MANAGER

LIST OF DIFFERENT PLANT

PES PLANT

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PEEK PLANT

DCDPS PLANT

DHDPS PLANT

COMPOUND PLANT

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Brief Product Descriptions:

Spire™ ultra polymers:

o KetaSpire® polyetheretherketone (PEEK) – easy-to-mold ultra polymer offering outstanding chemical resistance and mechanical performance up to 300°C (570°F)

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o AvaSpire® modified PEEK – novel PEEK-based formulations with unique advantages that bridge price and performance gaps

o PrimoSpire® self-reinforced polyphenylene (SRP) – world’s stiffest, strongest unreinforced polymer with a remarkable combination of surface hardness, chemical resistance and inherent flame-retardant properties

o EpiSpire® high-temperature sulfone (HTS) – Transparent amorphous polymer with excellent creep resistance at temperatures up to 265°C (510°F)

o Amorphous sulfone polymers:o Udel® polysulfone (PSU) -- Tough, transparent plastic with exceptional chemical

resistance, good hydrolytic stability and an HDT of 345°F (174°C)o Mindel® modified polysulfone (PSU) – Opaque, cost-effective PSU-alternative

offering specific advantages versus Udel, such as superior electrical propertieso Radel® R polyphenylsulfone (PPSU) – Super-tough transparent plastic with an

HDT of 405°F (207°C), excellent chemical resistance and the unique ability to be steam sterilized without significant loss of properties.

o Radel® A polyethersulfone (PESU) – Transparent plastic with a high HDT of 400°F (204°C) and better chemical resistance than Udel

o Acudel® modified polyphenylsulfone (PPSU) – Opaque PPSU-alternative offering cost advantages where application requirements match the balance of properties.

Semi-crystalline semi-aromatic polyamides:

o Amodel® polyphthalamide (PPA) – high-temperature nylon with exceptional mechanical properties, an HDT of 535°F (280°C), excellent chemical resistance and low moisture uptake.

o Ixef® polyarylamide (PARA) – aesthetic, structural specialty nylon that combines outstanding stiffness with exceptional surface appearance, plus low and slow water uptake, and great flow properties.

Additional semi-crystalline polymers:

o Primef® polyphenylene sulfide (PPS) – high-flow, structural plastic with good temperature and chemical resistance as well as inherent flame retardant properties.

o Xydar® liquid crystal polymer (LCP) – high-flow, high-temperature plastic with an HDT of 570°F (300°C), and extremely high chemical resistance

For the production of above mention product it has to go through following stages in different plant but mainly three main plant in Panoli are

I. PES

INRODUCTION

PES is an amorphous engineering thermoplastic resin with good high temperature resistance. It has excellent resistance to hydrolysis and repeated sterilization. Its outstanding rigidity and mechanical properties are little affected even at a continuous use temperature of about 185ºC.

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PES can be processed by all the common techniques adopted for thermoplastics like injection molding, blow molding and extrusion. Resins and compounds can be recycled a number of times without any significant loss in properties.

CHARACTERISTICS

Continuous use temperatures of 185ºC.

Very high rigidity

Good dielectric properties

High mechanical strength

Good dimensional stability

Good resistance to hydrolysis and sterilization

Good oxidative stability

Inherent flame retardance

GRADES

Unreinforced grades in power or granular form

3000 Ultra high viscosity grade for membranes.

3200 High viscosity grade for membrane and coating applications.

3300 Unreinforced high viscosity grade for injection molding, extrusion, blow molding, calendaring, etc.

3400 Unreinforced medium flow granules for injections molding

3500 Easy flow unreinforced grade for injection molding of thin walled components.

3600 Very easy flow, low viscosity grade for injection molding and extrusion compounding.

APPLICATIONS

I. Medical gadgets

Catheters

Sterilizing Boxes

Blow moulded bottles

Parts for dialysers

Reusable hypodermic syringes

Surgical instruments and components

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II. Electrical and Electronics

Printed circuit boards

Chip trays and carriers

Circuit breaker components

High temp. Electrical connectors

Coil formers and terminal blocks

Parts for power contactors and relays

III. Industrial applications

Oil level indicators

Blow moulded components

Heat exchanger parts

High temp. Lighting fixtures

Aircraft passenger cabin components

Components for absorption and distillation columns

IV. Automotive

Engine components

Automotive fuses

Headlamp reflectors

V. Household appliances

Microwave crockery

Pressure cooker parts

Hair dryers

VI. Ecological

Membrane for reverse osmosis

Ultra-filtration and gas separation

Filter housings

VII. Sanitary usages

Hot water meter components

Sanitary and pipe fittings

Pump rotors in heaters

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II. PEEK

INTRODUCTION

PEEK is a semi-crystalline high temperature specialty plastic with excellent chemical resistance, hydrolytic stability and very low flammability. It has a continuous use temperature of 260ºc. it has the ability to withstand high temperature and aggressive environments and hence can replace metals in critical applications.

It can be molded by all conventional processing techniques like extrusion, injection molding etc.

CHARACTERISTICS

Outstanding chemical resistance.

Outstanding wear resistance.

Outstanding resistance to hydrolysis.

Excellent mechanical properties.

Outstanding thermal properties.

Very good dielectric strength, volume resistivity, tracking resistance.

Very good radiation resistance.

GRADES

5300P: High viscosity grade in grade in powder form for powder coating

5300: High viscosity grade extrusion and injection molding

5400: Medium viscosity grade for extrusion and injection molding

5600: Low visc. Grade for injection molding of thin sections & complex parts

Reinforced grades

GATONE™ PEEK grades with glass fiber and carbon fiber reinforcements ranging from 10- 40% are available in natural or desired colors e.g. GATONE™ PEEK 5320GF is GATONE™PEEK reinforced with 20 % glass fibers custom made grades can be developed to meet specific requirements.

Standard conditions: 400ºc, 2016kg, 6 mins

Standard : ASTM –D 1183

APPLICATION

I. INDUSTRIAL APPLICATION

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Scientific laboratory instruments

Ink jet printers

Heater housings

Pressure transducer housings

Rotation wear components in centrifugal pumps

High temp. Electrical connectors.

II. ELECTRICAL AND ELECTRONICS

Wire & cable insulation

High temp. Electrical connectors.

III. FLUID HANDLING

Water meter housings

Valve seats

Pump impellers

Miniature fluid control components

IV. MEDICAL

Blood dialysis machines

Anesthesia delivery systems

V. AUTOMOTIVE

Aero-engine for cars

Headlamp reflectors

Starting disks in bus gears

Transmission thrust washers in sports cars

VI. AVIATION

Jet engines

Sandwich panels in aircraft interiors

Aerospace components

Airbus interior components.

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III. COMPOUNDING PLANT

The PES powder obtained from the PES plant has solvent unit on account of mode of polymerization this is extracted using de-volatilization extruder. PES from the silos is taken in the from of lots in a blender to mix with additive to impart better heat stability and process ability to the polymer powder at the time of processing and use. The blended powder is stored in storage hopper to avoid material shortage during the run.

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BRIEF PROCESS DESCRIPTION

1. POLY ETHER SULFONE (PES):

PES is manufactured by reacting Dichloro Diphenyl sulfone (DCDPS) & Dihydroxy Diphenl sulfone (DHDPS) in solution.

PES is manufactured by heating DCDPS mix in the presence of sodium carbonate. Reaction continues till desired viscosity built-up takes place. Water, Carbon Dioxide & industrial salt are generated as by- products. The PES is then precipitated in water to give PES powder. The solvent occluded in PES is removed by repeated washings or by refluxing in water. PES is then filtered & dried. It can be packed as powder or can be extruded into granules before packing. It can also be further compounded by adding glass fibers, mineral fillers, colors or any other desired additives before selling.

2. POLY SULFONE (PSU):

Ploy Sulfone is manufactured by reacting Bis-Phenol A & DCDPS in solvent in presence of potassium carbonate.

PS is manufactured by heating DCDPS plus Bis-Phenol A mix in solvent in the presence of Potassium Carbonate. Reaction continues till desired viscosity built-up takes place. Water & carbon Dioxide & Postassium Chloride are generated as by-products. The PSU is then precipitated in water to give PSU powder. The solvent occluded in PSU is removed by repeated washings & by refluxing in water. PSU is then filtered & dried. Adding glass fibers can also further compound it, mineral fillers, colors or any other desired additives before selling.

3.PLOY PHENYLENE SULFONE (PPSU):

Poly Phenylene Sulfone is manufactured by reacting Biphenol & DCDPS in solvent in presence of Potassium Chloride.

PPSU is manufactured by heating DCDPS plus Biphenol mix in solvent in the presence of Potassium Carbonate. Reaction continues till desired viscosity built-up takes place. Water & carbon Dioxide & Potassium Chloride are generated as by- products. The PPSU is then precipitated in water to give PPSU powder. The solvent occluded in PPSU is removed by repeated washings & by refluxing in water. PPSU is then filtered & dried. Adding glass fibers can also further compound it, mineral fillers, colors or any other desired additives before selling.

4. ACRYLIC POLYMER (GADDS):

Methyl Methacrylate is emulsified in water with catalysts. After latex formation is completed latex is spray dried to give powder for sale.

5. DICHLORO DIPHENYL SULFONE (DCDPS):

Mono Chloro Benzene (MCB) is chlorosulfonated using Sulfur Trioxide (SO3) & Chloro Sulfonic Acid (CSA) to give MCB-Sulfonyl Chloride. MCB-SO2CL is then reacted further with MCB in the presence of catalyst to give DCDPS. The crude DCDPS obtained is crystallized from its MCB solution, dried & sent for PES manufacture. Spent Sulfuric Acid is recovered as a by-product.

6. POLY ETHER ETHER KETONE (PEEK):

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Acid Solvents Anhydride (ASA) is prepared by reacting Acid Solvent with Thionyl Chloride. The SO2 & HCL gases evolved during reaction are scrubbed in caustic soda solution. The intermediate thus produced is distilled & used for polymerization.

In polymerization the PEEK acid is polymerized in presence of Acid solvent & ASA. The reaction mass after polymerization is drowned in water, filtered, washed & extracted with Solvent 1. It is further washed with water & finally dried.

The dried PEEK polymer is compounded with additives at elevated temperature to get granules of PEEK Polymer as finished product.

7. DIHYDROXY DIPHENYL SULFONE (DHDPS):

DHDPS is manufactured by reacting Phenol with concentrated Sulfuric Acid, which yields crude DHDPS along with water. Methanol, water & Carbon treatment is given to crude DHDPS, which yields pure DHDPS after crystallization. It is dried & sent for PES manufacture.

WHY IT USE:

High-performance applications in industries such as aerospace, automotive, plumbing and healthcare have historically relied on metals. Solvay gives you a variety of alternatives that provide greater design freedom. Our polymers let you:

o Design more complex shapes o Consolidate parts into fewer components o Simplify production o Produce transparent and colored components o Reduce part weight o Eliminate dents or corrosion o Reduce noise

54

55

Objective:

“To manage the current human resources in best possible manner”

Function:

o HR planning

o Recruitment and selection

o Training and development

o Employee Welfare and Safety

HR PLANNIG:

In HR planning is based on man power planning for that they use

o Demand forecasting: for that they use historical evidence of past series of facts , events are considering.

o Supply forecasting: it indicates from where the demand of man power is fulfilled , through internally or externally.

RECRUITMENT:

It is the next step in the manpower selection. The company has two main source of recruitment.

Internal source

o Promotion

o Transfer

o Employee reference

External source

o Former employee

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o Unsolicited source

o Privet employment agency

o Campus

o Deputation

SELACTION PROCESS:

57

RECIEPT OF APPLICATION

PRELIMINARY INTERVIEW

APPLICATION BANK

INTERVIEW

REFERENCE CHECK

MEDICAL CHECK UP

OFFER FOR APPOINTMENT

PLACEMENT

INDUCTION

TRAINIG AND DEVLOPMENT:

Training needs of all the employees are identified along with the performance appraisal.

o Providing training:

- In house training by internal faculty

- In house training by external faculty

In solvay provide two type of training

o On the job training

o Off the job training

They do various program for their employee development

o Get to gather

o Seminar

o Extra activities

Employee Benefits:

Transport services:

o The transport services are provided from Bharuch/Ankleshwar City/ Andada/ GIDC Ankleshwar. The rate of employees contribution towards usage of transport services is Rs.200/-per month.

o The transport services are arranged at Bharuch & Ankleshwar in all shifts.

Cafeteria services:

o Cafeteria Services are made available in all shifts at subsidised rates.

o The rate of employees contribution towards Lunch/ Dinner at the Cafeteria Services for Cafeteria members shall be at Rs.100/- per month

o The employees who intend to avail the same shall take snacks coupon from the contractor and acknowledge the receipt. A fix amount Rs. 50/- per month for 26 coupons issued to a member shall be deducted from the salary of members availing the facility. However, employees may take

58

additional benefit of the cafeteria facilities on to pay basis by making direct payment to the canteen contractor.

o The tea will be served to employees @ 2 teas per day in the cafeteria at company’s cost.

Welfare Items:

The following Items are distributed to Employees on non returnable basis –

Sr Particulars Unit Period Due

1 Uniforms 3 Pairs

2 Pairs

1st Year of Service

Every Year

On Joining

August

2 Rainy Shoes 1 Pair Once in two years June

3 Rainy Suit 1 No. Once in three years June

4 Winter wear 1 No. Once in five years October

5 Towel & Napkins 1 No. Once in a year February

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60

GENRAL MANAGER FINANCE

MANAGER ACCOUNT

EXECUTIVE EXCUTIVE

MANAGER TAXATION

EXECUTIVEEXECUTIVE

STRECTURE OF FINANNCE DEPARTMENT

Objective:

o FINANCIAL PLANNING

o ANALISING FUTURE GROTH PROSPECT

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o TO MANAGE WORKING CAPITAL

Function:

o This department examines the challan in respect of payment.

o This department handles the income tax and sales tax cases.

o This department collects the vouchers from the various departments.

o They note the entries in the sales return book on the basis of credit note & the entire of stock register.

o This department makes casting and posting from sales return register to ledger.

o They fill up the sales and income tax return per month.

o They checked whether the income tax department has given a correct order for payment of tax in advance.

o This department handles the all transaction with bank.

o They prepare the daybook, ledger, trial balance, manufacturing and profit & loss account and the final balance sheet

o They collect the “C Form” from the customer this department also allocates the total salary to the personnel department per month.

In solvay all work is done in SAP, I also learn how to do entry of bill, bank receipt, challan, seals tax, c form issue, etc.

Finance department people are busy with their work but they have shared their valuable time with me and give information what I need for my project.

Ratio Analysis:

Company provide me limited information about the finance and all the data are given globally so its not easy to calculate all type of ratio.

1. PROFIT MARGIN: It is also called return on sales, which measures the amount of net profit earned by each rupee of revenue.

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Profit margin = Profit After Tax x 100

Sales

YEAR 2005 2006 2007 2008

PROFIT AFTER TAX 816 817 828 449

SALES 8562 9399 9572 9490

PROFIT MARGIN 9.530484 8.692414 8.65023 4.731296

GRAPH:1

2005 2006 2007 20080

2

4

6

8

10

12

PROFIT MARGIN

YEAR

RA

TIO

The profit margin for the year 2005 is 9.530484 which is not bad, but slowly it is decreasing in further years as we can see that in the year 2006 it is 8.692414, in the year 2007 it is 8.65023 and in the year 2008 it is very low at 4.731296.In the year 2008 the profit margin is nearly half of what it was in the previous year, which is very critical. Therefore reasons should be found out for such decreasing profit margin and corrective actions should be taken to improve it.

2. ASSET TURNOVER: It is a measure of a firm’s efficiency in utilizing its assets. It indicates how many times the assets were turned over in a period and thereby generated sales. If the assets turnover is high it means the company is managing its assets efficiently and if it is low then it means that the company has more assets than it really needs.

Asset turnover= Sales

Average total assets

TABLE: 2

YEAR 2006 2007 2008

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SALES 9399 9572 9490

AVG. TOTAL ASSETS 11170.5 11140.5 11722

ASSET TURNOVER 0.841413 0.859207 0.809589

GRAPH: 2

2006 2007 20080.780.79

0.80.810.820.830.840.850.860.87

ASSET TURNOVER

YEAR

RA

TIO

The asset turnover ratio for the year 2006 is 0.841413 which cannot be considered much good, similar is the case with the asset turnover ratio of the further years as it is 0.859207 in 2007 and 0.809589 in 2008, so it can be said that the asset turnover of the company is low and the company is having more assets than it really needs. So the company should pay some attention to it and should either try to utilize its assets fully by increasing its sales or it should sell the assets that are in excess.

3. RETURN ON ASSETS: It is a measure of profitability from a given level of investment. It is an excellent indicator of overall performance of a company.

Return on assets = Profit after tax x 100

Avg. total assets

TABLE: 3

YEAR 2006 2007 2008

PAT 817 828 449

Avg. Total Assets 11170.5 11140.5 11722

Return on Assets 7.313907 7.432341 3.830404

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GRAPH:3

2006 2007 20080

1

2

3

4

5

6

7

8 RETURN ON ASSETS

YEAR

RA

TIO

The return on assets is 7.313907 for the year 2006, 7.432341 for 2007 and 3.830404 for 2008 which shows that the profitability of the company is not much high and this is the reason for the lower percentage of return on assets. Further the ratio has decreased tremendously in the year 2008 as compared to the year 2007. So it is the point where some more efforts should be done to find out the reasons for such a tremendous decrease. It is a point which attracts more attention. The management should pay some attention and find out the reasons about the sudden deteriorating performance of the company in the year 2008.

4 Current ratio: This is the ratio of current assets to current liabilities. It is a widely used indicator of a company’s ability to pay its debts in the short-term. It shows the amount of current assets a company has per rupee of current liabilities.

Current ratio = Current Assets

Current Liabilities

TABLE: 5

YEAR 2005 2006 2007 2008

CURRENT ASSETS 4189 3825 4180 4513

CURRENT LIABILITIES 3824 2679 2758 3334

CURRENT RATIO 1.09545 1.427772 1.515591 1.353629

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Table 2.1 Current Assets and Liabilities

GRAPH: 5

2005 2006 2007 20080

0.20.40.60.8

11.21.41.6

CURRENT RATIO

YEAR

RA

TIO

The current ratio is 1.09545 for the year 2005, 1.427772 for the year 2006, 1.515591 for the year 2007 and 1.353629 for the year 2008. It is generally believed that an ideal current ratio is 2:1. i.e. the Current assets should be twice the Current liabilities. The ratio of “2” is considered to be safe due to the fact that if the current assets are reduced to its half then also the creditors will be able to get their payment.

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67

TOPIC :- FIXED ASSET MANAGMENT

Topic is given by company because they require the result in end of July for their head office in Belgium.

OBJECTIVE OF THE STUDY:

The main objective of the study is to know

The number of asset really existing in the company which are show in asset list . The asset s are working condition or not Replace the assets which are not in working condition.

How to collect the data:

Observation of assets in company.

Verification with person who are working or using the asset.

Company asset list

Types of asset

There are various type of asset

Fixed asset

Current assets

Fictitious assets

Tangible assets

Intangible assets

Introduction

An important distinction is made in accounting between "current assets" and "fixed assets".

Current assets are those that form part of the circulating capital of a business. They are replaced frequently or converted into cash during the course of trading. The most common current assets are stocks, trade debtors, and cash.

Compare current assets with fixed assets. A fixed asset is an asset of a business intended for continuing use, rather than a short-term, temporary asset such as stocks.

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Fixed assets must be classified in a company's balance sheet as intangible, tangible, or investments. Examples of intangible assets include goodwill, patents, and trademarks. Examples of tangible fixed assets include land and buildings, plant and machinery, fixtures and fittings, motor vehicles and IT equipment

In any organization fixed assets is most important. It is permanent in the business. In modern time allocation of capital is one of the most important functions of fixed assets. There should be proper and appropriate provision for depreciation of these fixed assets.

Meaning:-

These are items of value which the organisation has bought and will use for an extended period of time; fixed assets normally include items such as land and buildings, motor vehicles, furniture, office equipment, computers

Fixed asset, also known as property, plant, and equipment (PP&E), is a term used in accountancy for assets and property which cannot easily be converted into cash.

This can be compared with current assets such as cash or bank accounts, which are described as liquid assets In most cases, only tangible assets are referred to as fixed., fixtures and fittings, and plant and machinery

According to International Accounting Standard (IAS) 16, Fixed Assets are assets whose future economic benefit is probable to flow into the entity, whose cost can be measured reliably.

The most commonly used assets are:

Office Equipment Evidence Medical Equipment IT Equipment, for example laptops. Vehicles Files Maintenance supplies Educational materials Software licenses Videos Etc.

Depreciating a Fixed Asset:

Depreciation is usually spread over the economic useful life of an asset because it is regarded as the cost of an asset absorbed over its useful life

In Solvay they calculate depreciatation two way first as per company act 1947,other as per income tax rule

They calculate depreciation as per days basis, how many days asset was use on this particular year.

In solvay all department are given cost center number for easily handle the activity in SAP.

Depreciation is one type of cost for company so it goes to particular cost center decided by company.

Depreciation is usually spread over the economic useful life of an asset because it is regarded as the cost of an asset absorbed over its useful life.

For calculating depreciation they use colander year (1/1 to 31/12)

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Rate of depreciation are fixed as per company act 1947, schedule 14.in this different rate are given for SLM &WDM.

Rate of depreciation as per income tax act : According to low there are two blocks, first block include asset which are use more than 180 days, its get provision for 100%.and other block include asset which are use less than 180 days, its

provision for 50%.

They also calculate depreciation as per income tax act for getting benefit of tax.

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Item Rate

Plant &machinery/Ele Item

10.34%

furniture &fixture6.33%

Building3.34%

Computer16.21%

A .C/water cooler4.75%

sundry asset13.91%

Vehicles 9.50%

Item Rate

Plant &machinery/Ele Item 50%

furniture &fixture 10%

Building 25%

Computer 16%

A.C/water cooler 15%

Vehicles 15%

Calculate the depreciation charge for an accounting period, the following factors are relevant

1) What is the relevant cost of a fixed asset?

2) What is the Useful Life of a fixed asset?

What is the relevant cost of a fixed asset?

The cost of a fixed asset includes all amounts incurred to acquire the asset and any amounts that can be directly attributable to bringing the asset into working condition.

Directly attributable costs may include:

o Delivery costs

o Costs associated with acquiring the asset such as stamp duty and import duties

o Costs of preparing the site for installation of the asset

o Professional fees, such as legal fees and architects' fees

The equation for cost basis is:

= Cost of the fixed asset + Sales tax + Shipping and delivery costs + Installation charges + Other costs [such as commissions or finder’s fees]

Description:

o Cost of the fixed asset; is what you paid for that equipment, furniture, building, vehicle, or any other asset you intend to use for more than 12 months

o Sales tax; is the actual taxes you were charged when purchasing that asset. o Shipping and delivery; includes any charges that you paid to get that asset to your place of

business. o Installation charges; include any charges you paid to get that asset working in your business.

That could include new electrical outlets, carpentry work, or any type of work that was needed to install the new asset.

o Other costs include any other costs involved in the purchase of the asset. This can include commissions or finder fees, as well as additional hardware such as wiring or monitors to put a new piece of equipment into operation.

o

What is the Useful Life of a fixed asset?

o An asset may be seen as having a physical life and an economic life.

o Most fixed assets suffer physical deterioration through usage and the passage of time. Although care and maintenance may succeed in extending the physical life of an asset, typically it will, eventually, reach a condition where the benefits have been exhausted.

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o However, a business may not wish to keep an asset until the end of its physical life. There may be a point when it becomes uneconomic to continue to use the asset even though there is still some physical life left.

o The economic life of the asset will be determined by such factors as technological progress and changes in demand. For purposes of calculating depreciation, it is the estimated economic life rather than the potential physical life of the fixed asset that is used.

Formula =

Asset value *ROD *DAYS/365

Date Description Accu.value Dep. Book val Cost.cen life

25.03.2007 LIQUID CHROMATOGRAPH SYSTEM 460,772.70 -103,653.67 357,119.03

G016700000 10

01.03.2007 AUTOTITRATOR 120,560.00 -29,810.79 90,749.21

G016700000 10

01.03.2007

MAGNETIC STRIPPER WITH HOTPLATE 22,249.00 -5,501.55 16,747.45

G016700000 5

01.09.2007 HALOGEN ANALYSER 1,649,948.08 -296,009.41 1,353,938.67

G016700000 5

01.02.2007 DIGITAL MANOMETER 121,758.00 -37,305.96 84,452.04

G016700000 5

03.02.2007

LIQUID CHROMATOGRAPHY SYSTEM 520,760.00 -159,302.58 361,457.42

G016700000 5

27.02.2007 RI DETECTOR 336,043.40 -100,821.07 235,222.33

G016700000 5

06.01.2007 SCADA SOFTWARE 91,200.00 -28,796.12 62,403.88

G016700000 5

29.01.2007 PARTICAL ANALYZER 1,613,198.42 -500,311.42 1,112,887.00

G016700000 5

03.08.2007 MICRO ANALYTICAL BALANCE 141,110.00 -34,636.60 106,473.40

G016700000 5

31.12.2007

PLATINUM CRUCIBLE 50 ML WITH OUT LID 341,976.00 -68,065.59 273,910.41

G016700000 5

26.12.2007 CONDUCTIVITY METER 31,200.00 -6,249.43 24,950.57

G016700000 5

This list show the QA department asset depreciation by strait line method .

Asset Register:

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Solvay specialties India pvt.ltd is a part of solvay group. So they report to their head quarter for their activity, finance department all works handle by USA. So they make two type of register

Both are different as per their requirement

o IGAP

o FASM

In solvay maintain both but in India only IGAP register is use, in this the rate of depreciation ,type ,writing style ,block are different from FASM.

How should the changing value of a fixed asset be reflected in a company's accounts?

o The benefits that a business obtains from a fixed asset extend over several years. For example, a company may use the same piece of production machinery for many years, whereas a company-owned motor car used by a salesman probably has a shorter useful life.

o By accepting that the life of a fixed asset is limited, the accounts of a business need to recognize the benefits of the fixed asset as it is "consumed" over several

Total asset value purchase in particular year

2006 2,497,616,927.00

2007 32,410,582.00

2008 796,497,278.00

In 2006 the value of asset is more because in this the values of acquisition of Gharda plant are included.

How to do Asset management :-

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1) Physical Verification

2) Bar Code Interface

3) Warranty / AMC / Insurance

4) Asset Card

5) Replacement based on Life

Physical Verification :

During the verification of fixed asset I with the support of the other two employee of the company verified that some of the asset acquired at the time of acquisition Gharda plant and others were purchase in during three years.

We prepared a list of asset On the basis of information received from Gharda and the list prepared by company.

The list included asset number, asset description, amount, supplier name, life year, location , condition are cover.

SNo.

Asset tag no

Asset description

Acquis.

value.

Cost canter

Manufacturer of asset

Location Condition

               

               

As per the information we started verification of asset in different cost center.

For example we verified O- item cost canter as per the following list.

ASSET LIST

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SR.NO

Asset Tag Number

Description of the asset Location Condition

1 O85018/97;OT;COLUMNS CUSTOM

Compounding plant

OK/Not OK

2 O88 SPARES FOR EJECTORCompounding plant

OK/Not OK

3 O90 SPARES FOR EJECTOREtp plant

OK/Not OK

4 O92SPARES OF EJECTOR SYSTEM

DHDPS PlantOK/Not OK

5 O93LAB STARTER HEAD CLAMPS

Compounding plant

OK/Not OK

6 O94HOMOGENOUS LEAD BONDING

DHDPS PlantOK/Not OK

7 O95 INDUSTRIAL LUMINAIREDHDPS Plant

OK/Not OK

8 O96 PUMP SPARESDHDPS Plant

OK/Not OK

9 O97 BARREL PUMPPEEK plant

OK/Not OK

10 O99 PISTON PUMPCompounding plant

OK/Not OK

11 O127 SPARES FOR PUMPEtp plant

OK/Not OK

I asked about the condition of asset to the person who is working on the particular asset or using the asset. And also cheek the location of the asset.

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We found that there are some asset which were not present in the location so we mark those item on list and submitted to finance department.

In this project we do verification of all department and verify all asset which are available in company.

Bar Code Interface:

As per the list we sticked a bar code sticker on asset which were available in location and were in working condition.

The stickers made by company were different according to cost center. For example

o QA- D301G167

o STORE-D513G192

o ENGG.-D1573G3278

o R&D-D11G161

o OITEM-D1009IN121

Bar code interface is necessary for providing the information about the availability of asset and it is also useful during the audit.

Department Description cost center

production M.S.TANK T-1303 G032787200

production M. S. TANK. G032300002

R &D HEAT EXCHANGER G032787200

production REACTOR R-1401 G032788200

peek REACTOR R-1501 G032788200

production REACTOR R-1504 G032788200

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QA DIGITAL MANOMETER G016700000

QA SCADA SOFTWARE G016700000

QA LAB STIRRER TYPE LS-2 G016700000

pes BLIND FLANGES G032788400

pes FLANGES SLIPON G032788400

compounding

HEAVY DUTY MIXER GRINDER

G040000000

Warranty / Insurance:

Manufactures give warranty for Ele. Item, equipment, tank, vassal, computer, etc. Use in company.

It is useful when any Equipment have found some problem. In the time of warranty period they replace or repair the problem equipment.

Insurance are taken on the basis of the value of asset, and also the use of the asset.

For this purpose they are directly contact to insurance company .they provide vehicle insurance such as Bajaj alliance.

Warranty/insurance are recorded for generating alerts and reminders for efficient asset maintenance.

We found so many item in warranty period which were not in working condition so we make the list of item

Asset Card :

An asset card is a one page summary of complete asset details i.e. acquisition, addition, physical

Verification, Depreciation, Sale details etc.

It Is very useful to get all information about the any asset, and also time saver for auditer.

In Panoli they not give all asset card to all asset.

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Replacement based on Life :

Based on the useful life entered in the acquisition screen, this report will show assets requiring

Replacement as on a given date.

After a life of asset over it is replace with new one. Following point are consider when asset are replace.

What about the Residual Value of a fixed asset?

o At the end of the useful life of a fixed asset the business will dispose of it and any amounts received from the disposal will represent its residual value. This, again, may be difficult to estimate in practice. However, an estimate has to be made. If it is unlikely to be a significant amount, a residual value of zero will be assumed.

o The cost of a fixed asset less its estimated residual value represents the total amount to be depreciated over its estimated useful life.

o They check asset on the base of company rules and after that they sell it in as per their need.

o For that they decide their scrape price and sell it out.

o Below list show some asset replace in short time, because its use for checking the quality of raw material &product. If it not change then reputation of company is down in market

List of asset replace in short time

Cap.date pur.year

Asset description Cost ctr YEAR

10.05.2006 2003 DIGITAL MANOMETER G016700000 5

10.05.2006 2004 SCADA SOFTWARE G016700000 5

10.05.2006 2002 LAB STIRRER TYPE LS-2 G016700000 5

10.05.2006 2005 LAB EQUIP. REMI MAKE STIRRER G016700000 5

10.05.2006 2004 LABORATORY OVEN G016700000 5

10.05.2006 2003 LAB OVEN,MUFFLE FURNACE EQUIPMENT G016700000 5

10.05.2006 2004 LAB STIRRER TYPE LS-2 WIT G016700000 5

10.05.2006 2005 LAB STIRRER TYPE LS-2 WIT G016700000 5

10.05.2006 2002 LAB.OVEN 1NOS G016700000 5

10.05.2006 2003 Lab strirrer Type LS-5/600 with chuck dr G016700000 5

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10.05.2006 2003 COOLING TOWER G032300002 4

10.05.2006 2004 M.S.TANK T-1304,T-1305. G032300002 5

10.05.2006 2003 LEAD BONDING OF TANK T-12 G032787200 5

10.05.2006 2003 M.S.TANK T-1312 G032787200 5

10.05.2006 2001 LEAD BONDING OF TANK T-12 G032787200 3

10.05.2006 2000 4000 LTR. TANK T-1215 G032787200 5

10.05.2006 2000 M.S.TANK T-1303 G032787200 5

10.05.2006 1999 M. S. TANK. G032300002 5

10.05.2006 2003 HEAT EXCHANGER G032787200 6

10.05.2006 2002 REACTOR R-1401 G032788200 5

10.05.2006 2001 REACTOR R-1501 G032788200 5

10.05.2006 2002 REACTOR R-1504 G032788200 5

Findings:

All asset show in list are available in company and also find out some new asset not include in asset list. for that we make new list.

At the time of verification we show so many asset which not use from very long time and use as scrap.

In plant many asset are not in working condition.

There are various number use in particular one asset so it create confuse ion for auditor and checker.

Suggestion:

Only single number should be given to asset & store in asset register so it easy and time saving.

Proper maintantion of assets should be done.

Maintain asset card for all asset.

Limitation

They not allowed me to enter in two production plant for verify asset, because its dingers for health.

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Getting list & data from department take so much time.

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BIBLIOGRAPHY:

Book : 1) SOLVAL LIFE NO 256 VOLUME PAGE NO-35

Websites :

www.solvay.com

www.google.com

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